Bitcoin

Planet

<![CDATA[<figure class="image"><img src="https://cimg.co/news/125551/331535/adobestock-508973466.jpg" srcset="https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_900_568.jpg 900w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_720_454.jpg 720w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_600_379.jpg 600w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_300_189.jpg 300w" width="900" class="content-img" alt=""><figcaption>Adobe Stock / Blue Planet Studio</figcaption></figure>The crypto asset management industry is set to experience exponential growth in the coming years, according to analysts at&nbsp;Bernstein Research.&nbsp;The analysts, led by&nbsp;Gautam Chhugani, predicted that crypto funds could reach a staggering $500 billion to $650 billion within the next five years, a significant leap from the current valuation of approximately $50 billion.In a&nbsp;<a href="https://www.barrons.com/articles/crypto-bitcoin-etf-sec-regulation-a3df431?siteid=yhoof2">note published</a>&nbsp;on Monday, the analysts cited several key factors driving this anticipated growth.&nbsp;One crucial catalyst is the potential approval of a spot&nbsp;<a href="https://cryptonews.com/coins/bitcoin/">Bitcoin (BTC)</a>&nbsp;exchange-traded fund (ETF).&nbsp;Last month, the US Court of Appeals for the District of Columbia Circuit&nbsp;<a href="https://cryptonews.com/news/grayscale-crypto-asset-management-firm-wins-lawsuit-against-sec.htm">ruled in favor of Grayscale</a>, ordering the SEC to set aside its earlier rejection of Grayscale&rsquo;s application and reopen the review process.The court ruled that there was no justification for the SEC to allow Bitcoin futures-based ETFs but deny spot Bitcoin ETFs.The SEC has until mid-October to contest the ruling, coinciding with its decision on whether to approve or postpone applications from other fund companies seeking to launch their own Bitcoin products.&nbsp;<h2 id="crypto-funds-could-be-available-by-2024">Crypto Funds Could Be Available By 2024</h2>Should the SEC cease resistance, Bitcoin funds could enter the market as early as next year.&nbsp;The Bernstein team expects ETFs to capture roughly 10% of the market capitalizations of Bitcoin and Ether, the second-largest cryptocurrency.<blockquote>"Crypto financial adoption follows hype cycles, and we expect a hockey stick adoption, with 2024 as the landmark regulatory year for approval of ETFs."</blockquote>In addition to Grayscale, prominent financial institutions such as&nbsp;BlackRock,&nbsp;Fidelity,&nbsp;WisdomTree, and&nbsp;Invesco&nbsp;have applied to launch Bitcoin ETFs.&nbsp;Some fund companies are also exploring products that hold spot&nbsp;<a href="https://cryptonews.com/coins/ethereum/">Ethereum (ETH)</a>&nbsp;or Ethereum-linked futures.Furthermore, industry giants like&nbsp;PayPal Holdings&nbsp;and&nbsp;Visa&nbsp;have either launched their own tokens or announced partnerships to strengthen their involvement in the crypto space.As reported,&nbsp;<a href="https://cryptonews.com/news/global-payment-firm-paypal-launches-crypto-stablecoin-how-does-it-work.htm">PayPal has announced</a>&nbsp;that it is rolling out its PYUSD stablecoin soon.&nbsp;The dollar-pegged asset is issued by&nbsp;Paxos, a blockchain infrastructure firm that used to issue&nbsp;<a href="https://cryptonews.com/coins/busd/">Binance USD (BUSD)</a>&nbsp;stablecoin.Meanwhile, Visa has&nbsp;<a href="https://cryptonews.com/news/visa-completes-off-chain-gas-payments-test-using-visa-cards.htm">recently completed</a>&nbsp;initial tests that allow users to pay their on-chain gas fees directly in fiat money through Visa card payments.<h2 id="regulatory-hurdles-continue-to-slow-crypto-adoption">Regulatory Hurdles Continue to Slow Crypto Adoption</h2>However, regulatory hurdles continue to impede broader institutional adoption.&nbsp;SEC Chair&nbsp;Gary Gensler, despite the agency's courtroom setbacks, maintains that the crypto industry is plagued by fraud and noncompliance with securities laws.&nbsp;During a conference earlier this month, he claimed that crypto&nbsp;<a href="https://cryptonews.com/news/sec-chair-gensler-crypto-industry-plagued-by-misconduct-legal-challenges.htm">has had a destructive impact</a>&nbsp;on millions of investors who have suffered losses.&nbsp;He even argued that the crypto market could potentially hurt the broader financial system.<blockquote>"It's an area that can hurt investors, but it can also hurt the broader economy because it can hurt investor confidence, and finance is ultimately built on trust."</blockquote>Despite the absence of comprehensive legislation, Bernstein analysts believe that the wave of enforcement actions is coming to an end.&nbsp;"The brunt of the regulatory backlash is currently behind us, and the Coinbase case will provide further clarity," they said.&nbsp;
]]>

Crypto Asset Management Industry Could Reach $650B in Five Years, Up From $50B Today: Report

Table of Contents

Cryptonews.com

Other articles published on Sep 26, 2023

Stader Labs to Launch Ethereum First Liquid Restaked Token, rsERH

Ether (ETH) Hides Enormous Recovery Potential

Axie Infinity Rises After Lunalog, Kangamoon Emerges a Top P2E Game, As The Sandbox Adopts SquidGame

Treasurys Tokenized on Ethereum Bring the Real World to Crypto in a Big Way

Stablecoin market cap has been declining for 18 months; why are investors fleeing crypto ‘safe ha...

NASA’s Next Moon Landing to Leverage Blockchain Technology

Join our free newsletter for daily crypto updates!